While this data does not conform strictly to the 80/20 rule, it gives you a clear picture that there is a small number of tickets accounting for a large portion of the total cost. After that, there is a “long tail” starting at about the 400 th ticket. Do you see how the first 100 or so tickets have a very high cost? Then there is a second tier ranging from $1,300/ticket down to $400 per ticket. The resulting chart has several “steps” where there is a big change in the cost of a ticket. In the example below, I took a list of 4,000 service tickets and sorted them in descending order. Select the top 20% of the tickets and see how much of the total cost they account for.Įxample of 80/20 Rule in Property Management Sort the list in descending order by Total Cost. Do you have data that shows how much labor and material expense was consumed for each ticket? Load the data into an Excel sheet (columns: Ticket #, Description, Issue Type, Total Cost). The rest of us can look at data to arrive at insights.įor example, let’s look at service tickets. Wouldn’t it make sense to understand what is common about the 20% of the tenants, or 20% of the maintenance issues that are having the most impact? Once you understand the patterns and common characteristics among them, you will know what actions to avoid or do more of.įor some property management executives, the 80/20 is observed through common sense and intuition.
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